Bar Economics

[Krazee]

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20." Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide
the $20 windfall so that everyone would get his 'fair share?'

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $50 instead of $59 (15% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

"I only got a dollar out of the $20,"declared the sixth man. He pointed to the tenth man," but he got $9!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got nine times more than I!"

"That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!"

The nine men surrounded the tenth and beat him up. The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.


For those who understand, no explanation is needed.
For those who do not understand, explanation is impossible.

[Calm]

Being one of the first five i would like to thank 6 -10 for there contribution.

[pawnhead]

It looks like they've been taking economics lessons from Marx, with similar results.
Without reward, there's no incentive.

BTW. Those weird smilies at the end are a glitch from copy/paste. If you click the 'Switch Editor Mode' button in the top right hand corner, before you paste in your text, then they don't pop up.

[wheelinround]

being one of the first 4 I gave up drinking years ago Sydney polluted water had much to do with it as well as its additives. I still go to enjoy the company but get frowned on as a woozer for not drinking.

So that leaves 3 of the first 4 that get their drinks for free what does that equate too how would that leave the situation. One less drink to be paid for by the others or one spare drink to be shared.

So the rich have gone overseas they still get their tax benifits from OZ, not only that but from where ever they have gone they get benifits like cheaper labour costs in some cases no taxes and cheaper drinks. But they no longer have their drinking mates.

One thing doesn't change for the 4 blokes who get theirs for free no matter where they live the still pay GST or other taxes for every other thing they purchase. Therefore they help pay the rich mans tax cuts & returns.

Not hard to understand when you have seen both sides.

PS forgot to put all the while when buying products it keeps the rich man in the lifestyle he has become a custom too so he can have his trips OS even tho he no longer buys me a beer.

[munruben]

I don't drink much these days. I spill most of it.

[wheelinround]

I don't drink much these days. I spill most of it.

time to buy a stein then John they have handles and a lid believe there is a shop up the hill sells them.

[Allan at Wallan]

I have never had an alcoholic drink in my life.
... perhaps it is just as well - I might still be
trying to work out where I fit within the taxing
system.


Allan

___________________________________

I am not at all worried about dying
... but just hope I am not there at the time.